Sun Tzu on Management
The Art of War in Contemporary Business
Strategy
(Based on a Major Study of ASEAN
Corporations)
By
Foo Check Teck
Peter Hugh Grinyer
1
Sun Tzu on Management
2
Preface
Sun Tzu’s prescriptions on organising aspects are
analogically relevant to strategic planning;
Obviously, it is difficult to draw parallels- Sun Tzu’s
work was based on a different context;
The Authors try to emulate the model set by Sun
Tzu to present the essence on organising strategy;
Strategic planning is much more than annual
exercise – it is the art of continuous shaping and
positioning of an organisation – to win against
competitors.
3
The book is distinctive in 2 aspects
Its findings are based on the results of surveys of
strategic planning processes in public listed
companies within ASEAN region;
Able to relate these findings to the prescriptions of
Sun Tzu (the ancient but influential military
strategies);
4
Part I: The Strategy Process
Implementation of strategic planning rationale –
Method of organisation in terms of major
organisational characteristics and the activities
involved;
To seek competitive advantages in a planned
and rational manner - ….Anciently the skilful
warriors first made themselves invincible and
awaited the enemy’s moment of vulnerability…..
5
Part I: The Strategy Process…..
Abilityto formulate timely counter strategies …
what is of supreme importance in war is to attack
the enemy’s strategy…
Sun Tzu fully recognised the importance of
assessing opportunities, threats and relative
strengths and weaknesses – SWOT Analysis
….generally, management of many is the same as
management of few. It is a matter of
organisation…
6
Part I: The Strategy Process…..
Utilisation of forecasts – management is better able
to read the signs of danger presented by the
immediate environment - …birds rising in flight is a
sign that enemy is lying in ambush…
Survey result: ASEAN companies evaluate
themselves by their relative competitive strength –
i.e. wider product range, better product quality and
competitive prices.
In organising, Sun Tzu stressed the role of the
command – company CEO – role of formal corporate
planning – mapping of strategies.
7
Part II: Critical Success Factors
CEO’s role – the CEO as the ruler or General (in
Sun Tzu terms) of an organisation continues to be
critical in shaping corporate strategies.
Environmental Factors - …now in fire attacks one
must respond to the changing situation… - strategic
planning process – respond effectively in changing
external situations.
Effective and skilful command - …thus the
potential of troops skillfully commanded in battle may
be compared to that of round boulders which roll
down from the mountain heights….
8
Part II: Critical Success Factors…
Esprit de Corps - …anciently, those described
as skilled in war made both large and small to
mutually cooperate; for the good troops to
succour the poor and for superiors and
subordinates to support each other….
People participating in strategic planning – BOD,
CEO, Executives
9
Part III: Performance Consequences
Adaptability to changes
– Strategic insights
– Goal achievements
– Industry competitiveness
Coping with change, is clearly of central
importance to the modern business corporation
just as it was to Sun Tzu’s armies
10
Part III: Performance Consequences…
Achieving goals in waging wars –
concentration of forces or resources
Role of strategic planning in organisation’s
achieving goals – build understanding of the
constitution businesses of the company,
regular discipline, systematic process of the
strategy development, written plans, sets
explicit goals and basis of strategy
implementation
11
Conclusion
Why this book?
– Applied Theory – between ancient and modern
times and between military and business
operations
– Increase level of knowledge (Sun Tzu = Strategic
Planning Process)
– Art of War = for winning the war = strategic
planning = to manage the organisation
12
Thank you
Mohamad Farid Sahat
29 October 2009
13
